Showing posts with label free trade. Show all posts
Showing posts with label free trade. Show all posts

Saturday, January 4, 2025

Why I am not a White Nationalist — Where They Are Right

Why I am not a White Nationalist — 

Where They Are Right

Thomas Allen


The following is based primarily on the works of Greg Johnson, who presents himself as a spokesman for White Nationalists and White Nationalism. First, I note where I agree with the White Nationalists. Then, I will comment on issues with which I disagree with them.

Not all White Nationalists agree with the political and economic policies and programs discussed below, but many, perhaps most, do. Nevertheless, all believe that countries should be monoracial. Also, being White separatists, White Nationalists should not be confused with White supremacists. (For the differences between the two, see “Views on Race” by Thomas Allen.)


Where White Nationalists Are Right

Correctly, White Nationalists support and advocate:

– encouraging truth and justice;

– limiting immigration to Whites;

– repatriating all illegal immigrants and all nonwhites who are not citizens;

– developing a program to encourage the repatriation of citizens who are nonwhite.

– following the example of the first naturalization law, which granted citizenship only to Whites;

– promoting ethnonationalism;

– promoting monoracial countries, i.e., every race should have its own independent countries, which means that one race should not rule over other races — consequently, imperialism is abhorred; (This follows Biblical teachings.)

– preserving the diversity of the races by giving them their own countries;

– accepting that democracy does not work in a multiracial society;

– recognizing that races are real and differ biologically and, therefore, are not social constructs, i.e., biological differences exist between the human races, and these differences are more than a few physical features that no sane person can deny (see “Nonphysical Racial Differences,” “Of One Blood,” and “Skeleton Differences of Human Races” by Thomas Allen) — these differences lead to different outcomes; consequently, unlike all left-wingers (liberals, progressives, socialists, and communists) and libertarians and most conservatives, White Nationalists are racial realists;

– acknowledging that the current system creates hatred between the races; 

– recognizing that unconditional surrender to Black Lives Matter has caused a significant increase in crimes by Blacks and more Black victims of Black criminals;

– encouraging Whites to breed to reverse the White demographic decline;

– strictly prohibiting miscegenation and interracial mating (this agrees with Biblical teachings — see “Does God Abhor or Approve Miscegenation?” and “The Bible, Segregation, and Miscegenation” by Thomas Allen);

– recognizing collective property of race and Western Civilization, and believing that such collective properties are worth protecting (so did the founding fathers) — unlike most libertarians, left-wingers, and neoconservatives, who do not recognize them as collective property worth protecting;

– acknowledging that Neo-Nazism is not a solution, although White Nationalists propose some of the same economic and welfare programs that the Neo-Nazis propose; both are statists;

– adopting an American-first foreign policy and ending foreign interventionism;

– acknowledging that Whites built and made America unlike left-wingers, nearly all libertarians, and many conservatives, who do not think that they did;

– accepting that both the Democratic Party and Republican Party serve the oligarchs; and

– possessing a more realistic view of America than does the typical conservative (the America that conservatives venerate died decades ago).

Further, White Nationalists correctly oppose:

– racial hatred;

– violent acts done in the name of White Nationalism or by White Nationalists;

– the oligarchs, who are disproportionately Jews, who rule the country primarily through frontmen in the federal government;

– the government serving the ruling elite, i.e., the oligarchs, at the expense of the rest of society;

– elitism;

– the acceleration of the decline of the present system;

– globalization;

– so-called “free trade” agreements but for the wrong reasons; they believe that these “free trade” agreements promote free trade, which they do not; (These so-called “free trade” agreements have little to do with free trade. Their objective is to manage trade for the benefit of multinational companies.)

– the parasites who are killing America, e.g., Zionists, but apparently not welfare recipients since they support the welfare state;

– immigration of nonwhites being used to replace Whites (see “Black Replacement” by Thomas Allen);

– the genocide of Whites (see “The Genocidal War Against the White Race” by Thomas Allen);

– DIE (diversity, inclusion, equity), political correctness, and wokeism;

– multiracial societies (Unlike most libertarians and many conservatives, White Nationalists know that multiracial societies cause alienation, hatred, conflict, and violence, which is why God ordained monoracial societies. However, left-wingers know that multiracial societies cause these problems and, therefore, promote multiracial societies. They want to destroy the existing society so that they can build a new society in their image on the ruins — just as the Yankees did following Lincoln’s War.);

– misogyny and misandry;

– political universalism, which is the fundamental cause of multiracialism, multiculturalism, cultural assimilation, and miscegenation;

– neoconservatives, establishment conservatives, and most other conservatives because they suffer from the same principles of egalitarianism and universalism as the left, which gives the left a great advantage over the right;

– Antifa and its tactics;

– the Democratic Party ardently working to destroy America and genocide the White race;

– voter fraud and corrupt election;

– the faux morality of racism being the greatest sin of all (with at least 800 definitions, “racism” is a meaningless term; see “Are You a Racist?” by Thomas Allen.); however, it is a sin that only Whites can commit; racism by nonwhites is not racism; and

– a false morality that blames Whites for all of the world’s problems even when Whites are innocent.


Copyright © 2025 by Thomas Coley Allen.

 Part 2

More political articles.

Tuesday, February 25, 2020

Economic Advantage

Economic Advantage
Thomas Allen

One argument that libertarians and other proponents of free trade use is economic advantage. That is, if country A excels in producing agricultural products and country B excels in producing agricultural implements, A benefits from trading its agricultural products for country B’s agricultural implements instead of manufacturing them itself — and vice versa.

For example, the South excelled in producing cotton and tobacco. Great Britain excelled in manufacturing fabric, tools, and other manufactured products. So, the South traded its agricultural products for British manufactured goods and vice versa. For that reason, the North imposed protective tariffs on manufactured products to give itself an economic advantage over Great Britain.

However, few libertarians and other proponents of economic advantage see any advantage of one race or culture over another. To them, all cultures and, especially, races are equal. If they acknowledge that races and cultures cause economic advantage, then they would have to advocate policies to protect and preserve racial and cultural differences and, consequently, racial and cultural advantages. To keep the advantages of different races and cultures from disappearing, they would have to promote segregation and separation, which is highly politically incorrect.

Libertarians and other proponents of free trade either ignore or fail to realize the importance of race and culture. Race determines culture, and culture determines economic advantage.

Although the natural resources of a country are important, race and culture are more important. They decide if anything is done with them and what is done with them. Africa is a prime example of race and culture determining economic advantage. Great mineral treasures and agricultural potential lie in Sub-Sahara Africa. From their creation, Negroes and Khoisans have inhabited this region. Yet, they did little to develop it. Until the Aryan settlers arrived, the Negro’s most important export was slaves — first to the Melanochroi and then to the Aryans of Europe and later New England. Aryans developed Africa’s mineral resources and agricultural potential.

An example of cultural impact on economic advantage occurred in Europe during the Middle Ages. The Church prohibited the charging of interest on loans. So, if a clergyman, king, nobleman, or merchant needed to borrow money, they had to borrow from the Jews, who were not covered under the Church’s anti-usury edict. Thus, culture gave Jews an economic advantage in lending and later banking.

To retain and maintain economic advantage, racial and cultural advantages, i.e., differences, have to be protected and preserved because economic advantage grows out of racial and cultural advantages. To retain and maintain cultural advantage, races have to be protected and preserved because culture grows out of race. (Race precedes culture and, therefore, makes a culture.) Segregation and separation are the only sure way to preserve and protect the races, and, thus, they are the only ways to maintain economic advantage. Goods and services can cross borders without people (immigrants) crossing borders freely — especially, immigrants of different races and alien cultures.

Contrary to what libertarians and other proponents of free trade may believe, racial and cultural diversity and, therefore, advantages and differences are at least as important as, if not more important than, economic advantage. All are necessary for the well-being of mankind. Economic advantage depends heavily on culture, and culture is the product of race. Therefore, if economic advantage is to be retained and maintained, the races have to be protected and preserved. Only segregation and separation can protect and preserve them, and, by that, retain and maintain economic advantage.

Copyright © 2019, by Thomas Coley Allen.

More articles on economics.

Sunday, September 30, 2012

Restoring an Agrarian Society in the South

Restoring an Agrarian Society in the South
Thomas Allen

[Editor’s note: Footnotes in the original are omitted.]

    “Agrarianism” is defined in I'll Take My Stand as follows:

    Opposed to the industrial society is the agrarian, which does not stand in particular need of definition. An agrarian society is hardly one that has no use at all for industries, professional vocations, for scholars and artists and for the life of the cities. Technically, perhaps, an agrarian society is one in which agriculture is the leading vocation, whether for wealth, for pleasure, or prestige — a form of labor that is pursued with intelligence and leisure, and that becomes the model to which the other forms approach as well as they may.
     In “The Pillars of Agrarianism” Frank Owsley complements this definition by writing, “. . . agriculture was the leading vocation . . . the agrarian population and the people of the agricultural market towns must dominate the social, cultural, economy, and political life of the state and give tone to it.” He adds that “subsistence farming must be the first objective of every man who controls a farm or plantation. The land must first support the people who till it; then it must support their stock.”

    In “Happy Farmers” John Ransom defines agrarianism as “. . . old-fashioned farming; or the combination of subsistence farming of the first place with a money farming of the second place. . . . Agrarianism is a kind of amphibianism: the farmer, wonderful creature, is capable of sustaining his life in either or both of two different economic elements. It should be both, but in a certain order; his private or subsistence economy first, and his social or money economy second. . . . The technique of subsistence on good land, with inexpensive tools [means] . . . to raise the great bulk of the foods for the family . . . to do plain carpentering to the extent at least of repairs, to paint and whitewash, . . . to feed all the animals, as well as persons, from the land, to fertilize the land by the periodic use of grass crops.”

    Owsley identifies the principal enemy of agrarianism as “. . . a system which allows a relatively few men to control most of the nation’s wealth and to regiment virtually the whole population under their anonymous holding companies and corporations. . . .” He states a major objective as the restoration of property and the abolishment of the proletariat. “The more widespread is the ownership of property, the more happily and secure will be the people and the nation.”

    Both Owsley and Ransom advocate a free market, free trade economy, which would place agriculture on par with industry. (In this essay industry or industrialism includes manufacturing, commerce, and finance.) They identify the economic problems of America during the Great Depression (when they wrote) as caused in large part by trade restrictions, such as protective tariffs and import quotas. The trade restrictions gave the industrialist a protected market in which to sell his products at a higher price than he could in a free market. Trade restrictions reduced the price of agricultural products because the agriculturist could not trade his products for foreign manufactured goods. They identified part of the problem as the concentration of economic power into the hands of a few. Thus, they advocated the widespread ownership of property. Agricultural goods should have priority over manufactured goods. The tax system needed revising — especially property and land taxes. Although both saw a need for government intervention, they sought to keep it minimal, mostly by providing assistance to people to resettle on the land. Otherwise, farmers would become welfare wards. (Unfortunately turning farmers into welfare wards has come to pass in the United States. Just suggesting a reduction in farm subsidies, raises a protest across the country in opposition just as suggesting a reduction in social security or any other welfare program.) Neither believed in nor advocated egalitarianism. Each person was to stand or fall on his own merit, abilities, and resources. Both outlined a program, which differed in some details, to bring about a revival of an agrarian economy in the South. Parts of their programs are still of value. Parts are dated and would be counterproductive if implemented today.

    Much has changed in the South since the agrarians wrote their essays in the early 1930s. The most obvious change has been the industrialization of the South. Many details offered by the agrarians 60 years ago to bring about an agrarian society and concomitant agrarian economic system are now out of date and would be difficult, even impossible, to implement without resorting to authoritarian government. However, the underlying principles are still valid. The essence of agrarianism can still be achieved in the twenty-first century South.

    The essences of agrarianism are individualism, self-reliance, and self-sufficiency. Agrarianism stresses the importance of the family, the community, and social activity, especially religion. It requires decentralized ownership of property, both land and industry, and a decentralized political economy. Its economy is a free market, free trade economy with widespread ownership of property. Its political system is decentralized republicanism of concurrent majorities as opposed to a democratic, oligarchic, or autocratic political system. Its social system is one of free association with respect for the various races of mankind and a desire to preserve them. Economic, political, and social egalitarianism is an abhorrence because it is unnatural. Hierarchies and authority are recognized and respected. However, they are not touted or protected by law. They are tempered because of the independence of subordinates. Agrarianism brings about leisure time to reflect and invest in the “finer things of life,” such as religion, the arts, philosophy, and craftsmanship. It creates time for community services both secular and religious and both social and political. (Politics becomes an avocation or social duty rather than a profession.) Sports, recreation, and vacationing, though important, are not the objects of leisure under agrarianism. Agrarianism stresses the high culture of the classics and folk culture of the people while it shuns the mass culture of democratizing television. It preserves traditions and heritage. It provides a feeling of belonging and a place, people, and past. Agrarianism stresses the spiritual over the material while recognizing the necessity and importance of the material.

    To bring about an agrarian economy, which is an economy based on the essential principles of agrarianism, a three-part program is needed. The first part addresses the ownership of land, agriculture, and a program of returning people to the land. The second part addresses industrialism and the ownership of industry. The third part addresses the bureaucratic regulatory state. These programs should be implemented simultaneously along with programs to rectify the political and social systems to achieve an agrarian society.

    A program is needed to address land ownership, agriculture, and returning people to the land.

    Land in the South should be owned by the inhabitants of the South and preferably by inhabitants of the State in which the land is located. Land ownership by corporations and other associations, except churches, should be restricted to those organized in a Southern State and preferably to those organized within that State. Land owned by corporations and other associations should be limited to the minimal amount of land needed for factory and office buildings and concomitant parking, settling ponds, and buffer zones, but not to exceed some specified maximum amount, say 100 acres. Land ownership by persons residing outside the South who are not citizens of a Southern State should be prohibited. Likewise, with associations, those organized outside the South should be prohibited from owning land in the South.

    Ownership of land by governments is in desperate need of restriction. The federal government should own no land. Whatever land it may need it should obtain by short to medium-term leases, leases of no more than about seven years. State and local governments should be restricted to owning no more than about 5 percent, which should include easements, of the land within their jurisdiction. They should own no land outside their jurisdiction.

    Land that is not owned by a citizen and that has not been used for a number of years should be required to be auctioned to citizens who do not own land. Land that escheats to the State should be auctioned to citizens who do not own land.

    The right of the heir apparent should be protected to ensure that the land remains in the family. (The heir apparent is the person who would naturally and legally inherit the property where there is no will, e.g., the eldest son.) A modified system of primogeniture is suggested. The heir apparent is defined by law and cannot be deprived of his inheritance in the land, especially the homestead, without his consent. Furthermore, the land should not be sold or title otherwise transferred without the consent of the heir apparent. Such laws would tend to protect and preserve the land and homestead within the family from generation to generation.

    To protect the land and homestead further, it should be made somewhat inalienable. Any land owned by a citizen could not be taken to satisfy a debt, civil suit, or tax lien. (The only time a court could alienate the land of a citizen would be when the citizen has been convicted of a felony, mala in se but not mala prohibita, and the land or money obtained from selling it is needed to pay restitution to the victim of the crime.) To prevent banks and other loan companies from refusing to lend to homesteaders, discrimination based on the ownership of the land should be prohibited. Such acts would achieve the agrarian goal of making land unmortgageable.

    Besides these land reform programs, a program is needed to assist and encourage people to return to the land to become homesteaders. (A homesteader may take several forms. He may be a classic farmer described by the agrarians who is first a subsistence farmer and second a commercial farmer. He may be the type often found in the South today who owns a few acres up to occasionally several hundred acres and who raises much of his food on his land but who earns his money primarily with an off-farm job. Two subcategories of this type of farmer are the farmers who supplement their farm income with an off-farm job and the farmers who supplement their off-farm income by farming. Such a program would assist persons, primarily family units, in acquiring land and settling it. The principal form of aid would be in loans for the land (say up to 90 percent), dwelling (say up to no more than 50 percent of the median price of a house in that area to encourage the homesteader to do as much work in building his own house as he is capable), and a small amount for initial living expenses, equipment, and supplies. Such a loan would be repayable within say 20 years. Rather than paying a compound interest rate as common on most loans, the borrower would pay say 10 percent more than the amount of the loan and some uniform minimal amount no matter the size of the loan. These fees rather than tax money would pay for all the salaries, overhead, administrative, and other costs connected with these loans. No person should be eligible for more than one loan during his lifetime. Only citizens of the State where the loan is granted should be eligible for the loan. To ensure that the loan is used for homesteading purposes, the borrower should be required to raise a minimal amount of his food, say two-thirds or three-fourths, to provide his own water and sewage systems rather than connecting into a community or public systems, and perhaps meet other requirements. Failure to meet these requirements could result in eviction. The title of the land would not pass to the borrower until the loan is repaid in full along with the accompanying fees. If the borrower died before he repaid the loan, the loan and land would pass to his heirs. If the borrower were evicted before he completely repaid the loan, he should continue to be obliged to finish paying the loan. Funding for this program would come from a very small land and property tax. After some years a trust fund should be built up, and this tax could be ended. Members of the board overseeing this program should guarantee any loans that are irredeemably uncollectible by paying off the loans with their own money. Such a program should greatly aid people who want to become homesteaders but who lack the necessary means.

    The agricultural policies of the States (the federal government should not really have any except a foreign trade policy directed toward removing trade barriers) should be revised. They should emphasize homesteading and subsistence farming over commercial farming — the complete opposite of today’s policies.

    A parallel program to the program of returning people to the land is a program to expand the ownership of industrial capital. This program would be another loan program. Loans would be made available to citizens of that State to buy shares of corporations organized in that State when they meet certain conditions. Examples of these conditions are (1) when the citizen registers his first marriage, (2) when the birth of a child is recorded (Both the parents and the child would receive loans.), (3) When a mother remains home with her minor children for the first five years of their lives, (4) when a citizen reaches certain ages, e.g., 20, 40, 60, 80, and 100, (5) when a citizen owns a homestead for a minimal amount of time, and (6) as a reward when a citizen performs certain outstanding services. The loans would be repaid from the stock dividends. Most dividends would be used to repay the loan while a small part would go to the shareholder. The shareholder could not sell his shares until the loan has been repaid although he could trade them for shares in other companies. The shareholder’s blood kin would inherit these shares as he may choose. The funds for lending would come primarily from a small corporation tax. After a significant trust fund has been built, this tax could be ended. This program would go a long way toward spreading the ownership of industrial capital without resorting to some socialistic scheme.

    The corporate structure itself should also be revised. Corporations should be organized so that both immediate and ultimate control rests with the owners and not with those who are merely managers. The stockholders, not the board of directors, should nominate and elect the board of directors and principal executive officers. The entire net income of a mature corporation (a corporation that has effective access to market sources of capital funds for new capital formation) during or immediately after the close of each financial period should be paid out in dividends to its shareholders (except perhaps a small percentage retained as working capital and contingent reserves) unless the shareholders vote in each financial period that part should be retained for expansion or debt retirement.

    Cooperatives and mutualities (companies owned, managed, and operated by the workers) should be encouraged and developed. Perhaps a program modeled after that for assisting people to form homesteads could be developed to assist people to form mutualities.

    The third and most difficult program needed to bring about an agrarian economy and an agrarian society is a complete overhaul of the bureaucratic state. What is needed is the complete elimination of many, probably most, governmental programs and a drastic reduction in others. Very few new programs would be needed. (Only a few areas of reform are discussed here and then only in general terms. To discuss all of the reforms needed, even in general terms, would require several books.)

    Perhaps the most important reform needed is true tax reform — meaning tax reduction instead of the Washington definition of disguised tax increases. The federal and State constitutions should strictly limit taxes as to type, amount, and use.

    The federal government should levy only two types of taxes. The first would be a tax levied by the federal government on the States in proportion to their population and the value of all real property therein. The other tax would be an export and import tariff. Such a tariff should be uniform, that is, the same rate is paid on every type of good imported regardless of origin without exception. Import tariffs should be limited to 5 percent. Export tariffs should be limited to 2 percent on manufactured goods and to 5 percent on raw goods except agricultural products, which should not be taxed.

    State and local taxes are also in dire need of reform and reduction. The income tax should be eliminated. The sales tax should be eliminated or at least reduced to less than 1 percent.

    From a strictly agrarian point of view, the tax in most need of reform is the property and land tax. The property tax should only be used to pay for those governmental services that are directly related to protecting property, e.g., for fire protection and for part of the police and defense. The property tax should not be used for those governmental activities that do not relate to the protection of property, e.g., parks and recreation (user fees should be used), sewage and water (again user fees should be used), welfare programs (they should be eliminated, but if they are not, participation in such programs should be voluntary and only the participants in such programs should pay for it), and public schools (they should be abandoned, but if not, then they should be supported solely by voluntary gifts and a poll tax levied on the students actually attending public schools). Governments should pay taxes on the land that they own. Any government or company that has an easement across another’s land should pay the taxes on the part on which it has the easement. For tax purposes, land should be appraised based on how it is being used rather than based on its best use. (An exception would be vacant land in, not adjacent to, built-up commercial or industrial areas of towns and cities. Such land probably should be appraised as commercial or industrial land.) Such reform is necessary to make the land and property tax compatible with an agrarian society.

    Inheritance and estate taxes should be abolished so that the homestead, family-owned farms and businesses, and the family capital can be passed on to the next generation.

    Rather than supporting government by general taxes that have no relation with the services received, taxes that have some relation with the services received should be the primary source of governmental revenue. Thus, a poll tax would become a major source of revenue. It should be used to pay for a good part of the police, defense, and general operation of government. (Another important aspect of the poll tax is that in a republic every citizen benefits, at least in theory, the same and equally from governmental activity; therefore, every citizen ought to contribute the same and equally to support the government. Also, if the poll tax is a principal source of governmental revenue, it will serve to keep government small, and by that, liberty great, because it is a direct, obvious tax that affects everyone the same. To believe that the populous would tolerate paying a high rate of such an obvious tax where everyone pays the same is absurd.) User fees (fees paid by the user of a service where the user has the option of using or not using the service without any penalty beyond not receiving the service, such as using a park) and service fees (fees paid by the user of a service where the user does not have the option of not using the service without a penalty beyond forgoing the service, such as registering a deed or transferring a deed) should be used to pay for most governmental services — especially the user fee. Such tax reform would go a long way to facilitating agrarianism.

    Governments should be denied the power of eminent domain. Denying governments this power should protect the homesteader from bureaucratic agencies that want to take his land without paying a fair market price for it. (A fair market price is the price at which an exchange takes place. That a homesteader refuses to sell at the price offered is proof in itself that a fair market price has not been reached. The buyer must also pay for intangibles.)

    Licensing and permitting requirements should be abolished. Building codes, if retained, should be modified to encourage innovation and to facilitate rather than discourage the homesteader building his own dwelling and buildings.

    Zoning and land use restrictions should be abolished. If they are retained, they should allow farming and livestock rearing in every district. They should allow multiple uses of property and more than one principal building, i.e., several homes and businesses and homes on the same lot or plat.

    Environmental laws should not be used, as they are often used, to war against the landowner, farmer, and homesteader. Environmental laws are important and necessary, but those currently on the books go way beyond what is needed and desirable. They should be completely rewritten. They should be written from the point of view of protecting life and property from trespass, vandalism, battery, and, in severe cases, manslaughter. They should be modeled after these laws. They should not be used as they now are to take land without buying it or to control land use and development.

    The current monetary and banking system should be dramatically changed. A decentralized free banking system should replace the current centralized banking system and its legal tender notes. The governmentally prescribed legal tender monetary system should be replaced by a free market monetary system where the market instead of politics determines what will be used as money — be it gold, tobacco, debt (which is what is currently used for money), or bank notes. Then inflation and economic contractions (panics, depressions, and recessions) would be mild and short-lived and generally localized.

    To facilitate the creation and maintenance of an agrarian economy and society, changes are needed in the political system and social system. Although a detailed discussion of these changes is beyond the scope of this essay, they can be generally outlined. The present egalitarian democratic political system with its concentration of power in the central government needs to be abandoned and replaced by republicanism of concurrent majority where church and family are the state’s coequals. Each State acting in its own independent capacity as a state (body politic) should be the final judge of the acts of the federal and local governments as it has created both as its agents and should be able to veto any act of either that it judges to be contrary to law. (Each local government probably should be given enough home rule by its State’s constitution to veto acts of the States that it judges to usurp its proper authority.) Likewise, the church and family, being the state’s coequals, could veto acts of the State or its agents when in their independent opinion the State or its agents usurp that which belongs to the church or family. Another needed political reform is to weigh voting and representation in favor of homesteaders, agriculturists, property owners, and taxpayers.

    In the realm of social reform, the current egalitarian social system of integrational genocide should be abandoned. A system that respects and protects the various races of mankind should replace it. Adopting a system of separation as advocated by Lincoln and Jefferson can only obtain such preservation and protection.

    Family and church should become the focal point of the social system. These political and social reforms are essential to achieving and maintaining an agrarian society.

    The Southern States have no hope of becoming an agrarian society if they remain colonies of the United States. For more than a century, the doctrine of industrialism has guided the controlling regime of the United States. Mercantilism and commercialism with an emphasis on finance now guide the regime. Industrialism seeks egalitarianism through a proletariat democracy with its deadening dehumanizing mass culture. It seeks to destroy all true individuality by amalgamating all into the oneness of an egalitarian integrated society stripped of all morality. It seeks a political economy of democratic fascism where a democratic government controls all, and a democratic state is all, and minorities (dissenters from the democratic order) are prosecuted (usually covertly rather than overtly — it is less messy and noticeable that way). Under this regime agrarians will continue to be hunted down and destroyed, for agrarianism is the antithesis of industrialism and of all that this regime represents.

    Mercantilism and commercialism differ little from industrialism with respect to agrarianism. The major difference is that mercantilism and commercialism seek a plutocratic-controlled democracy instead of a proletariat-controlled democracy. Both want an amalgamated egalitarian society except the plutocrats do not amalgamate with the masses whom they intend to rule. Other than that they differ little from each other. Both are the eternal enemy of agrarianism.

    The only hope that the South has of once again becoming an agrarian society lies in becoming a free and independent confederation of free and independent Southern States. Such Southern independence would not only bring hope to Southern agrarians, but it would bring hope to agrarians throughout the world.


Copyright © 1991, 2010 by Thomas Coley Allen.

More articles on the South. 

Sunday, February 27, 2011

Do We Really Need to Return to Hamilton?

Do We Really Need to Return to Hamilton?
Thomas Allen

[Editor's note: Footnotes in the original are omitted.]

Two contrasting articles appear in the December 2010 issue of Chronicles. They are “Back to Hamilton” by William J. Quirk and “Prosperity” by Clyde Wilson. Quirk’s article reviews Paul Craig Roberts’ book How the Economy Was Lost: The War of the Worlds. Quirk focuses on Roberts’ promotion of protective tariffs as the means to revitalize America’s economy and increase the standard of living standard of middle-class Americans. Quirk seems to agree with Roberts.

Quirk does observe that when the dollar was connected with gold, prices remained fairly stable over time. However, under the true gold standard, general prices should decline over time because productivity rises faster than the money supply. Quirk also notes that gold disciplines politicians and checks governmental expenditures much more effectively than the supposedly independent Federal Reserve. (Where Roberts stands on the gold standard, I do not know. Based on some comments that he has made in his columns and in radio interviews, he does not appear to be an adherent of the gold standard.)

Roberts blames “globalization” for America’s economic problem. He is probably right. However, globalization has nothing to do with free trade. Trade as administered through the World Trade Organization (WTO) and other trade agreements is managed trade. An international bureaucracy answerable to no government manages world trade, which extends to local trade, for the benefit of the international corporations.

That people call these agreements free trade is a travesty. They prevent free trade instead of allowing it. The Thought Police are living and operating. To call WTO, NAFTA, and the like free trade agreements is like calling war, peace; freedom, slavery; and ignorance, strength.

Based on his paraphrase of Pat Buchanan’s statement, Roberts is aware that these agreements are not trade agreements — much less free trade agreements. Their objective is to strip the American worker of his wealth and transfer it to the elite, who control the international corporations.

Quirk shows that the median income rose from 1947 to 1973 and declined from 1998 to 2008. Actually, median income has been declining since 1973. This decline has much more to do with severing gold’s last hold on the dollar in 1971 than with trade agreements.

The common myth that big industry and especially big banks (because they supposedly control the world’s gold) love the gold standard is false. They abhor it because it inhibits their unbridled greed. They love fiat money, especially paper fiat money and its electronic equivalent.

Bankers can create fiat paper money and its electronic equivalent out of nothing. They cannot create gold out of nothing. That is why the gold standard was abandoned.

Big business likes fiat money because they are first in line to get it. Thus, they are first to spend the new money, so they use it before it loses its value. Then they use it to repay their loans after it has lost its value and with that cheat their creditors.

Roberts does not object to managed trade. He objects to who is managing it and how they are managing it. Roberts does not want to replace the current system of managed trade with free trade. He wants to replace it with another system of managed trade.

Quirk (or Roberts, the article is not clear about whom) points to Hamilton’s arguments. Hamilton offered two arguments, which are still used, to promote protective tariffs. (1) They are necessary to build and maintain the industrial base for war. Hence, adherents of protective tariffs fear that the military-industrial complex will not develop and mature unless protective tariffs are imposed. (2) Capital used in industry produces more wealth than that used in agriculture. Today’s proponents also claim that it produces more wealth than that used in services.

If the proponents of protective tariffs want to impose tariffs to protect the military-industrial complex, they should prohibit the importation of strategic metals and rare earths. These materials are essential to modern warfare. Therefore, the country should not depend on foreign sources. The prohibition of their importation, which is the ultimate objective of a protective tariff, would force the extraction of these metals from the oceans and land sources where their concentrations may be as high as micrograms per megaton. Consumer goods that used these materials would no longer exist because no one could afford them. Inferior products would replace items that used these materials. The computer age in America except for the U.S. government, which can manufacture and steal all the money that it needs, and multinationals, which can move their computer work to other countries, may die. No sacrifice is too great for the benefit of the military-industrial complex.

If the purpose of tariffs is to build and maintain a war machine, wouldn’t it be better to subsidize these industries directly from the Defense Department’s budget? Unlike direct subsidies, tariffs do not guarantee that these industries will be built or maintained. Furthermore, direct subsidies reveal the real cost of building and maintaining these industries. Knowing the real cost, the people can then decide if these industries are worth the cost. (A major reason for using trade restrictions like protective tariffs instead of direct subsidies is to conceal the real cost.)

Hamilton was an agent of the bankers and major industrialists. He was himself a banker and helped to found the Bank of New York. He wanted protective tariffs to transfer wealth from the common American, most of whom were farmers at that time, to his rich northern friends.

Wilson reveals the truth of this objective in his article when he writes, “When tariffs were beneficial to the Northern rich and burdensome on everyone else, the United States had tariffs; when ‘free trade’ is beneficial to the Northern rich and a burden to everyone else, we have ‘free trade.’” (Wilson argues that when discussing issues, such as free trade versus protective tariffs, one must look beneath the surface. One must find out who benefits. One will usually find that the ruling elite, and not the people, is the primary beneficiary. Consequently, the power of government needs to be severely restricted to limit the ability of the ruling elite to use it for its benefit.)

According to Quirk, Hamilton intended tariffs to provide temporary protection for America’s manufacturing. How long is “temporary?” The country has had protective tariffs of some sort ever since Congress adopted Hamilton’s proposal. (Yes, the United States still have some protective tariffs and other import restrictions even today with all these so-called “free trade” agreements.)

Do Quirk, Roberts, and other promoters of protective tariffs really believe that Lincoln was right when he sent 600,000 men to their deaths to impose his protective tariff on the South? Protective tariffs, which enriched the North at the expense of the South, were the major reason for the Southern States seceding. If they do not believe that Lincoln was justified in his actions, why? If he were, why? Lincoln was merely doing what they advocated: imposing protective tariffs.

Quirk, Roberts, and other proponents of protective tariffs are victims of Bastiat’s broken window syndrome. They see people being paid to repair the broken window and people selling the material for the repair. They wrongly conclude that breaking the window is good for the economy. They see only the work and selling that it causes. (This mentality misleads people to believe that the massive destruction of capital and labor in war is good for the economy.)

What they fail to see is what Bastiat and any good economist see. A good economist sees the lost of revenue to the people who would have received the window’s owner’s money if he had not had to pay for the broken window. For example, if the owner had wanted a new pair of shoes, a shoe store and manufacturer have suffered a loss. The country as a whole has lost. If the window had not been broken, the owner and the country would have had both a window and a new pair of shoes. After the window is broken, the owner and the country have only a new window. A new pair of shoes has been lost.

Protective tariffs work the same way. They divert money from where the consumer prefers to spend it to pay the tariff or a higher price. Thus, consumers buy less. The economy and country have less wealth.

Hamiltonians like Roberts point to protective tariffs and the economic growth, primarily industrial growth, in America’s history. They conclude that this growth resulted from the tariffs. Without the tariffs, growth would have been much lower — or at least they imply this conclusion. Protective tariff promoters treat “sequences as consequences.”

Wilson notes that treating sequences as consequences is a flawed way of thinking. He writes, “If B follows A, then A was the cause of B. In fact, in understanding the wealth of nations, that is a bad assumption — because there are always multiple variables, some of them unknown, unpredictable, too deep to be observed, and even spirited and unmeasurable.” Because Congress imposed a tariff and the industrial economy of the country grew does not mean that the tariff caused this growth.

Historical examples exist that suggest that the imposition of protective tariffs causes or at least contributes to depressions. Congress enacted the McKinley Tariff Act in 1890. This tariff raised rates and made circumvention more difficult. The country suffered a severe panic in 1893 and a depression that lasted until 1896 or 1897, depending on whose criteria are considered. Did the tariff cause the depression? If everything else is ignored, which the Hamiltonians seem to want to do in promoting tariffs, the answer is yes. Most likely the tariffs were a contributing factor. However, the primary cause was the fiat silver dollar primarily as the Treasury note of 1890.

If protective tariffs really do invigorate the economy as a whole, then apparently it lacks to power to overcome the negative effects of fiat money. If true, then imposing protective tariffs without first eliminating fiat money will not solve the country’s economic problems. It may even make the problems worse.

Quirk begins his article with a discussion of Ben Bernanke and the Federal Reserve. Quirk fails to mention that the Federal Reserve is a child of Hamilton. Hamilton was an advocate of centralized banking. As the United States already have centralized banking, no need exists to go back to Hamilton for that.

Although Roberts disagrees with Bernanke on many issues, the two do agree on one thing. They agree that higher prices are preferable to lower prices. Gasoline at $5 per gallon is better than gasoline at $1 per gallon. Bernanke wants to achieve higher prices through currency depreciation. Roberts wants to achieve them through protective tariffs.

Roberts complains, and rightly so, about the United States “financing its trade and budget deficits by turning over the ownership of existing U.S. assets” and by getting foreigners to buy U.S. Treasury debt with their trade surplus dollars. He claims that dependency on foreigners to finance budget and trade deficits is “beyond the reach of monetary and fiscal policies.” This is not exactly true. If the U.S. government cuts its expenditures to match, or preferably to be below, its revenue, it would not need foreigners to buy its debt. Moreover, reducing the size of the government to match its income would lessen the burden that the economy is currently forced to carry. It would diminish the distortions of the economy that the government’s expenditures cause. It would eliminate agencies whose purpose is to interfere with and thwart economic activity. Or at least it would significantly decrease their intervention. Elimination of debt is a fiscal policy that the U.S. government can undertake to halt the adverse effects described by Roberts.

Once America’s number one export, federal debt, is eliminated, the trade balance becomes self-correcting. If Say’s Law is still valid, and it is, the concern about the trade deficit and the lack of industrial productivity vanishes. If Americans do not produce anything with which to buy imports, foreigners will cease trading with them. Imports will fade away until Americans begin to produce something with which to buy imports. Trade balances automatically correct without governmental intervention. Governmental intervention only leads to more distortion and imbalance.

Based on Quirk’s review of Roberts’ book, Roberts does an excellent job of describing America’s economic problems and much of what has caused these problems. Unfortunately, he offers a false solution.

On the other hand, Wilson identifies the primary cause of America’s economic problems: too much governmental intervention. To solve America’s economic problems, this intervention needs to be drastically reduced.

Wilson begins by giving a good description of a prosperous society. A prosperous society has minimal debt, and its debt is temporary. Only a few people are very rich or very poor. Nearly everyone falls around the middle. Society’s wealth distribution is a narrow bell-shaped curve: It has a small standard deviation. Almost everyone “has an abundance of necessities and access to some small luxuries and leisure.” It has small, unobtrusive governments with the local governments being the most noticeable and important, and the national government, the least. Private patronage supports religion, charity, education, and the arts. Cultural cohesion flourishes.

America has lost most of these aspects of prosperity. Protective tariffs will not bring them back. On the contrary, they concentrate more power in Washington. They concentrate more wealth in the bank accounts of the politically powerful.

Protective tariffs may drive wages up, but this is not a given. However, the increase in prices that protective tariffs cause will nullify much, if not all, of the wage increase. Americans may be worse off after the imposition of protective tariffs. Their real income may decline, and they can afford fewer luxuries and probably fewer necessities. (The gold and silver standards are what drove real wages up during the nineteenth century and not tariffs.)

Wilson asserts, and correctly so, that hard work and merit resulting in an appropriate reward has largely vanished in today’s America. Conniving, scheming, and, most importantly, political connections and being a member of a politically promoted group reward people today. (In turn, the rich and powerful, i.e., the ruling elite, globalists, control most of these people.) After the ruling elite, these are the people who will benefit most from protective tariffs. The ruling elite will use them to control the tariffs and direct the tariffs to protect their interest.
Wilson concludes his article with the following:
Nobody can understand or completely manage a large economy. Surely, there are not many “lessons of history” more obvious and certain than that. But economics is a matter of human thought and action. Human thought and action can be applied to such matters as trade, labor, the money supply, in ways that are better or worse. But better or worse for whom! We need to remember what prosperity is supposed to feel like. But first we must find out who “we” are.
Thus, if improving the prosperity of the people is the objective, America is obviously going in the wrong direction. Ever more government has improved the prosperity of the ruling elite. However, it has diminished it for everyone else. If the people want to regain their lost prosperity, they need to do something different. They need a massive dismantlement of government.

The first step to take toward solving America’s economic problems is to withdraw from WTO, NAFTA, and similar agreements and organizations. (Withdrawal from the United Nations and all its subordinate organizations would also be beneficial.) Next is ending subsidizing off-shoring and oversea relocating along with all other corporate welfare. Closely related to this action is the elimination of the military-industrial complex by immediately ending all undeclared wars and closing all bases in foreign countries. An armed force necessary to deter attacks on the United States is much smaller than that needed to maintain a world empire. The gold and silver coin standards need to be reintroduced to operate parallel with the current federal reserve note standard with the intention of ending the latter. Abolishing the Federal Reserve and centralized banking is one of the most important elements toward long-term recovery. Eliminating the overly burdensome regulatory environment in which businesses are forced to operate is another necessary component. (This highly regulated environment exists primarily for the benefit of big businesses as it greatly reduces their competition.) Regulatory agencies that have no constitutional foundation, such as the Environmental Protection Agency (the States are perfectly capable of taking care of their environmental problems), should be immediately eliminated. Most important is a return to constitutional government, which would reduce the size of the U.S. government by 90 percent.

Roberts’ and Quirk’s solution differs significantly from the above. They believe that the solution to the economic problems caused by governmental intervention is more governmental intervention. The correct solution is to remove the governmental intervention that caused the problems.

Jefferson was right when he “objected to using government to encourage manufacturing.” The government should leave the economy alone and let manufacturing develop in its own way and at its own pace. Jefferson said, “[It] can hardly be wise in a government to attempt to give a direction to the industry of its citizens.”

Does the county really need to return to Hamilton? Hamilton supported the concentration of political and economic power into the hands of a few. The country has been operating under his philosophy since 1860. His philosophy has led it to where it is today. Has not the time long past to abandon Hamilton’s philosophy? Has not the time come to adopt Jefferson’s philosophy of decentralizing and dispersing political and economic power?

Copyright © 2010 by Thomas Coley Allen.


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Friday, August 7, 2009

Question for Protectionists

Questions for Protectionists

Thomas Allen

To aid those who are not enamored with protectionism to better understand protectionism, advocates of protectionism need to justify protectionism by answering the following questions.
Since when did free trade require unaccountable international agencies like NAFTA and WTO to manage it?

Since when did free trade require one mandatory international codex after another to make it fair trade?

Since when did free trade require subsidizing domestic companies to build factories in other countries as the United States have been doing for decades?

Why do many protectionists claim that the U.S. Constitution authorizes, even commands, Congress to restrict and prevent imports? Where does the U.S. Constitution authorize or demand protectionism? Isn’t the power delegated to Congress to levy tariffs (duties) on imports for the purpose of raising income instead of protectionism? Isn’t it true that the more effective tariffs are at preventing imports, the less revenue they raise; and when tariffs are 100 percent effective at preventing imports, they raise no revenue? If not, why?

If protectionism, i.e., restrictions on trade, is beneficial, why did the American colonists object to the trade restrictions imposed by the British government? Why did they not demand more trade restrictions?

Were Lincoln’s protective tariffs worth the 600,000 lives lost to impose them? Why?

When one country trades another country I.O.U. Nothing that can be repudiated at any moment for useful tangible products, such as steel, computers, or televisions, who has received the greater value, and who has the advantage?

If protectionism creates wealth, why not make the United States 50 times wealthier by creating 50 autarkic States?

If trade barriers at a country’s borders are desirable, shouldn’t internal trade barriers also be desirable? If not, why? Why the inconsistency?

Why is the scarcity of goods that results from protectionism better than an abundance of goods?

How does a country benefit from having less? For example, without protectionism, a worker can exchange a day of labor for one domestically manufactured pair of shoes or two foreign-manufactured pairs of shoes. Protectionism prevents him from buying foreign shoes. How does he benefit from having one pair fewer shoes? How does the country benefit from having one pair fewer shoes?

Why should people be forced to work longer for the same quantity of goods, which is what protectionism does?

Why are high prices, which is the result of protectionism, preferable to low prices? Why do retirees and others on fixed income benefit more from high prices than from low prices as they must under protectionism? Is this just and why?

As the objective of protectionism is to keep prices high, shouldn’t the government do all that it can to stifle and even prohibit innovations that drive prices down? If not, why? Why the inconsistency?

Why is "doing less with more," which is the outcome of protectionism, more desirable than "doing more with less," which is the natural inclination of mankind? Is not the objective of protectionism to direct resources from their most efficient use, "doing more with less," to less efficient use, "doing less with more"? If this is not protectionism objective, why is this the outcome of protectionism?

If a protectionist is going to be consistent, shouldn’t he seek to maximize his cost, labor, effort, and inefficiencies in his personal endeavors, which is what protectionism seeks to do for the country as a whole? If not, why? Why the inconsistency?

Why should consumers be forced, ultimately under the penalty of death, to buy overpriced and often inferior products, which is what protectionism does?

Why should the government arbitrarily pick winners and losers in economic activities, which is what it does with protectionism?

Why should the government (politics) decide what the people are to buy as it does with protectionism, instead of letting the people themselves (economics) decide what to buy?

Is transferring wealth from the politically weak to the politically powerful, which is what protectionism does, just and desirable? Why?

Why should the interest of producers be placed above the interest of consumers, which is what protectionism does?

Economically, what is the difference between restricting the importation of iron and steel to benefit iron and steel producers and restricting sanitation to benefit hospitals, doctors, drug manufacturers, and undertakers?

Why should consumers be treated as though they are the property of producers and their politicians, which is what protectionism does?

Why are voluntary exchanges undesirable and in need of prohibition?

Why should freedom of exchange be allowed for some products but prohibited for others?

Why do protectionists consider that which is good for an individual, a family, a county, and a State to be evil for the country? If not, shouldn’t they be advocating trade restrictions between families, counties, and States? If not, why? Why the inconsistency?

Which is more important: the amount that a worker is paid, which is the focus of protectionism, or the amount that a worker can buy with his pay?

As protectionism prevents workers from exchanging their labor for the largest quantity of goods and services possible, how can protectionism be just? Is requiring workers to pay artificially higher prices, which protectionism causes, just, desirable, and beneficial to workers? Why?

Does a worker’s pay depend on the supply of and the demand for labor or on the prices of goods?

Why is erecting obstacles to the movement of goods, which is what protectionism does, much more desirable than diminishing and eliminating obstacles? If the erection of barriers to the movement of goods is desirable, shouldn’t the government do all that it can to erect obstacles to the movement of goods everywhere? If not, why? Why the inconsistency?

Why should the government expend resources to remove natural barriers to trade such as building new roads and bridges while it is erecting artificial barriers such as protective tariffs? As the objective of protectionism is to prevent trade, why expend resources to improve trade?

What is the difference between reducing the supply of food with protectionism and reducing the supply of food by plowing under crops? If a protectionist believes that food should not be restricted, he needs to explain his bigotry against farmers and why farmers should be forced to pay higher prices for his supplies from protected industries.

If a farmer in Maine decides to grow coffee, shouldn’t Congress erect trade barriers to protect this new domestic industry from foreign imports? If not, why? Are some industries more worthy of protection than others? If so, why? Who decides, how do they decide, and why?

If the importation of products from Montreal is so injurious to Chicago that they must be stopped or at least greatly restricted, as protectionism demands, wouldn’t the importation of products from New Orleans also be injurious to Chicago? Shouldn’t importations from New Orleans also be stopped or restricted? If not, why? Why the inconsistency?

If, for example, tool manufacturers in Texas need protection from tool manufacturers in Brazil because Brazil subsidies its tool manufacturers, do tool manufacturers in Texas need protection from tool manufacturers in New York because New York subsidies its tool manufacturers? If not, why? Why the inconsistency? From the perspective of tool manufacturers in Texas, what is the difference?

As exporting countries give gifts to importing countries when they subsidize their exports, why should such gifts be prohibited or taxed away? Doesn’t consistency demand prohibiting or taxing away all gifts including Christmas gifts and birthday gifts? If not, why? Why the inconsistency? Do not Christmas and birthday gifts reduce the productivity of the recipient by relieving the recipient of the need to work longer to acquire the gifts?

If protectionism is used to equalize the prices of foreign-produced articles with domestically produced articles (this is a favorite argument of protectionists), shouldn’t the government require producers and sellers to sell all similar articles at the same price, preferably at the price of the highest producer or seller? If not, why? Why allow the inconsistency? Why should a competitive advantage be allowed in one case and not in the other?

If the country places restrictions on importation of goods to "equalize" the cost of regulations, taxes, labor, etc. shouldn’t States with high costs because of regulations, taxes, labor, etc. be allowed to restrict imports from States with lower costs? If they shouldn’t, why? Why the inconsistency?

If protectionism is needed to protect domestic workers from lower-wage foreign workers in another country, why isn’t protectionism needed to protect domestic workers in a State from lower-wage workers in other States? Doesn’t consistency demand protection in both situations? If not, why? Why the inconsistency?

If protectionism is needed to protect domestic workers from foreign workers, aren’t laws needed to protect workers from machines (mechanical labor) by forbidding labor-saving machines? If not, why? Why the inconsistency?

If high-wage countries need protectionism to protect themselves from low-wage countries, why do low-wage countries enact protectionism to protect themselves from high-wage countries? Conversely, if low-wage countries need protectionism to protect themselves from high-wage countries, why do high-wage countries enact protectionism to protect themselves from low-wage countries?

If protectionism stimulates industry and promotes prosperity, shouldn’t communities that are the most isolated show the greatest advancements, progress, growth, and prosperity? Why do they not?

If protectionism strengthens a country, why do countries, when they go to war, seek to prevent their enemies from importing goods? If protection strengthens a country, blockades, the ultimate form of protectionism, should make an enemy unbeatable, shouldn’t they? If not, why? Does protectionism strengthen in one case, and in the other it weakens? If so, why? Why the inconsistency?

If free trade weakens a country, when countries go to war shouldn’t they use their navies to open the enemy’s ports and dump goods there? Shouldn’t they use their air force to drop goods instead of bombs? As free trade, especially dumping goods below cost, destroys a country, shouldn’t dumping free goods bring down a country quicker and safer than the instruments of war? If not, why? Does free trade weaken a country in one case, and in the other, it does not? If so, why? Why the inconsistency?

When has authoritarian political control of the economy, which is what protectionism is, ever been superior to freedom?

As protectionism is the heart of mercantilism, why do protectionists insist on continuing the antiquated and archaic mercantile system that all economists of merit have denounced for 200 years?

Copyright © 2009 by Thomas Coley Allen.

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